Originally Posted by
Sunfish
........and the predictable result will be a massive increase in lost, stolen damaged and late baggage. That will produce enough reputational damage to offset any savings. However since the reputation bit isn’t quantified in accounts, it will look like a saving.
Not in my experience, Skystar (now part of Menzies) is a great example... run by ex airline people, won many awards from carriers like Singapore Airlines, Emirates and others for the excellence of their ground services. It was owned by a Mining Company (Monadel)... not sure what it's like now but it's definitely possible to provide quality ground services at a lesser cost than the airline and maintain quality.